Urban Affairs Review, Ahead of Print.
Local governments face revenue constraints and increasing demands for public service delivery. Confronted with fiscal pressures, cities, and counties engage in collaborative arrangements to save costs or improve service levels. However, the same pressures can also prevent them from seeking collaboration. Two distinguishable arguments in tension can be identified: fiscal stress as a driver or as a deterrent for collaboration. This study reconciles these contrasting views using longitudinal network analysis to examine how fiscal stress affects the likelihood of collaboration in four critical service areas. Results point toward fiscal stress negatively affecting collaboration in service areas when economies of scale are not achievable, and increasing the likelihood of collaboration in service domains where these scales are possible. Understanding when fiscal stress affects collaboration is particularly relevant given resource disparities at the local level. Such inequality can create reinforcing cycles of fiscal stress and reduced opportunities to collaborate in service delivery.